Interview Question: Tell me about a time when you discovered a significant internal control deficiency during an audit engagement
During an audit engagement at [Company Name], I encountered a significant internal control deficiency related to the segregation of duties in the accounts payable process. While reviewing the documents and procedures, I identified that the same individual was responsible for initiating payments, approving invoices, and reconciling accounts.
To address this deficiency, I conducted a detailed analysis of the process and proposed implementing a segregation of duties by assigning specific roles to different individuals. I also recommended the implementation of a system that would automatically flag any potential conflicts of interest or unauthorized actions in the accounts payable process.
By identifying and addressing this internal control deficiency, we were able to improve the overall effectiveness and reliability of the company's financial reporting and reduce the risk of fraud or errors in the accounts payable process.
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